SMEs remain marginalised on funding – GCB boss

Managing Director of GCB Bank Ghana Limited, Mr. Simon Dornoo, has said that small and medium-sized enterprises remain marginalised when it comes to banks’ provision of funding to support business-growth activities of players in the sector, and has called on banks to increase attention to this key economic area.

Speaking at the Corporate Initiative Ghana’s (CIG) 13th Ghana Banking Awards held at the weekend in Accra, he said despite the fact that the country’s financial sector remains very vibrant with the various technological investments which have helped to increase consumer access to banking services, funding for the SME sector -- which is a key driver of economic growth -- remains on the low side.

“Ghana’s banking sector is vibrant, and access to banking has increased significantly; banks continue to leverage technology to automate their services in the wake of electronic banking to offer convenience to consumers.

“But despite these positives, small and medium-sized enterprises and low-income-earning groups remain marginalised in accessing funding to grow their businesses.

“Banks should be encouraged to take up the task to support businesses in the low-income-earning bracket; and that is where this awards event comes in handy. Let’s use this platform to recognise and reward banks in the spirit of stirring up interest to invest in the SME sector,” he said.

Mr. Dornoo’s request comes on the back of strong advocacy from economists on the need for extensive support to small or low-income earning businesses in the country which continue to be key drivers of the national economy, especially in terms of job-creation and employment.

In Ghana, statistics from the Registrar General’s Department suggests that 92 percent of companies registered are micro, small and medium enterprises are noted to provide about 85 percent of manufacturing employment, contributing about 70 percent to Ghana’s GDP.

But despite these significant economic contributions and prospects, SMEs in Ghana are faced with a myriad of challenges; such as the absence of adequate and timely banking finance, limited capital and knowledge, and the non-availability of highly skilled labour at affordable cost.

About 26 commercial banks received various awards at this year’s event, which was on the theme “Identifying and Rewarding Excellence in the Banking Services Proposition”, with Access Bank Ghana being adjudged “Best Bank of the Year 2013”.

Zenith Bank, Standard Chartered Bank, Bank of Baroda and Guaranty Trust Bank took awards for Best Banks in customer care, trade finance, competitive pricing and product innovation respectively, while the awards for Best Banks in long-term loan finance and financial performance went to Agricultural Development Bank (ADB) and Standard Chartered Bank.

Chief Executive Officer of the Ghana Shippers’ Authority, Dr. Kofi Mbiah who was the guest speaker for the function, charged banks in the country to adopt strategic leadership and innovation to position so as to tap into the burgeoning potential in both the domestic and sub-regional economies.